Iraq to stand by extension of Opec freeze deal

Iraq is committed to reducing oil production to decrease a glut in the global market, and will support extending output cuts in line with any
Opec decision, Prime Minister Haider Al Abadi said.

The Organisation of the Petroleum Exporting Countries meets in Vienna on May 25 to consider whether to extend output cuts agreed in December last year between Opec and 11 non-member countries, including Russia. “Iraq is with the continuation of a reduction of oil production of Opec nations and we will push in that direction,” Abadi said in a news conference broadcast on state TV.

Abadi did not specify for how long Iraq was willing to extend the current cut. The country’s oil minister said last week Iraq would support a six-month extension.

Saudi Arabia and Russia, the world’s top two oil producers, agreed on Monday on the need to keep the current cut in place until March 2018. Non-Opec member Kazakhstan however said on Monday it would struggle to join any new deal on the old terms, as its own output was set to jump. Oman said it fully supported the idea of a nine-month extension.

Opec wants to reduce global oil inventories to their five-year average but so far has struggled to do so. Stockpiles are hovering near record highs, partly because of rising production in the US, which is not part of the existing deal.